Contrasting Pool (NASDAQ:POOL) and Leatt (OTCMKTS:LEAT)

Leatt (OTCMKTS:LEAT) and Pool (NASDAQ:POOL) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, dividends, profitability and institutional ownership.

Earnings & Valuation

This table compares Leatt and Pool”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Leatt	$44.03 million	1.39	-$2.20 million	$0.36	27.36
Pool	$5.29 billion	1.69	$434.33 million	$10.97	21.88

Pool has higher revenue and earnings than Leatt. Pool is trading at a lower price-to-earnings ratio than Leatt, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for Leatt and Pool, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Leatt	0	0	0	0	0.00
Pool	1	7	3	0	2.18

Pool has a consensus price target of $337.86, indicating a potential upside of 40.79%. Given Pool’s stronger consensus rating and higher probable upside, analysts plainly believe Pool is more favorable than Leatt.

Profitability

This table compares Leatt and Pool’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Leatt	3.51%	4.90%	4.19%
Pool	7.77%	31.40%	11.43%

Institutional & Insider Ownership

0.6% of Leatt shares are held by institutional investors. Comparatively, 99.0% of Pool shares are held by institutional investors. 80.0% of Leatt shares are held by company insiders. Comparatively, 3.0% of Pool shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Leatt has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Pool has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500.

Summary

Pool beats Leatt on 12 of the 14 factors compared between the two stocks.

About Leatt

Leatt Corporation designs, develops, markets, and distributes personal protective equipment for participants of motor sports and leisure activities worldwide. The company offers Leatt-Brace system, an injection molded neck protection system designed to prevent injuries to the cervical spine and neck. It also provides helmets for head and brain protection; and body armor products, including chest protectors, full upper body protectors, upper body protection vests, back protectors, knee braces, knee and elbow guards, off-road motorcycle boots, and mountain biking shoes. In addition, the company offers other products, parts, and accessories, such as goggles; toolbelt, duffel, gear, helmet bags, hats, and hydration kits; casual clothing, caps, and sunglasses; and apparel that comprises suits, jackets, jerseys, pants, shorts, socks, and gloves, as well as aftermarket support products. Further, it acts as the original equipment manufacturer for personal protective equipment sold by other brands. The company's products are used by riders of motorcycles, bicycles, snowmobiles, and ATVs. It sells its products to customers through a network of distributors and retailers; and direct to end consumers through digital channels and online store at leatt.com. The company was formerly known as Treadzone, Inc. and changed its name to Leatt Corporation in May 2005. The company was founded in 2001 and is headquartered in Durbanville, South Africa.

About Pool

Pool Corporation distributes swimming pool supplies, equipment, and related leisure products in the United States and internationally. The company offers maintenance products, including chemicals, supplies, and pool accessories; repair and replacement parts for pool equipment, such as cleaners, filters, heaters, pumps, and lights; and building materials, such as concrete, plumbing and electrical components, functional and decorative pool surfaces, decking materials, tiles, hardscapes, and natural stones for pool installations and remodeling. It also provides pool equipment and components for new pool construction and the remodeling of existing pools; irrigation and related products, such as irrigation system components, and professional turf care equipment and supplies; commercial products, including heaters, safety equipment, commercial decking equipment, and commercial pumps and filters. In addition, the company offers fiberglass pools, and hot tubs and packaged pool kits comprising walls, liners, braces, and coping for in-ground and above-ground pools; and other pool construction and recreational products comprising discretionary recreational and related outdoor living products, such as grills and components for outdoor kitchens. It serves swimming pool remodelers and builders; specialty retailers that sell swimming pool supplies; swimming pool repair and service businesses; irrigation construction and landscape maintenance contractors; and commercial pool operators and pool contractors. Pool Corporation was incorporated in 1993 and is headquartered in Covington, Louisiana.